Stuart Robb and Julien Irving of Leonard Curtis Business Rescue & Recovery Limited were appointed Joint Administrators of Red Dog Music Limited (“Red Dog” and/or “the Company”) on 21st November 2018.
Red Dog, which has stores in Edinburgh and London, was incorporated in May 2008 and operates as an independent musical instrument and technology retailer, providing support to musicians, recording studios, technology training providers as well as the general public.
Red Dog, like many other retailers, has seen its margins impacted in recent years as it attempted to compete with an ever-increasing level of online competition. Efforts to transition the business to a lower margin lower cost model – with the support of the Company’s trade creditors – were unsuccessful, which led to the directors taking the decision to sell the business as a going concern. Unfortunately, this process was also unsuccessful and the difficult decision to appoint Administrators was concluded.
Due to significant supplier pressure and high fixed operating costs, Red Dog has now ceased trading and the Administrators will take steps to wind down the Company’s operations. As a result, 13 of the 18 employees have been made redundant. The remaining staff have been retained in the short term to assist the Administrators in carrying out their duties.
Joint Administrator, Stuart Robb commented as follows: “The Joint Administrators, having assessed the Company’s financial position, have taken the decision to cease trading with immediate effect.
“Our efforts will now be focussed on providing the affected employees with the appropriate support whilst seeking to maximise realisations for the benefit of the Company’s creditors. There remains an opportunity to acquire the Company’s remaining assets, which include a strong brand and online presence, and we would encourage any interested parties to contact Kristopher Tosh by email, as a matter of urgency, at email@example.com with a note of their interest.”
Leonard Curtis Business Rescue & Recovery is part of the Leonard Curtis Business Solutions Group.
For further media information, please contact Karen Winstanley or Sue Souter at Souter PR on 01625 839 319 or email firstname.lastname@example.org / email@example.com
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